Nasdaq Japan to wind down its operations
By Our Markets Bureau | 17 Aug 2002
New
York: With
deep regret the board of directors of Nasdaq Japan Inc
(www.nasdaq.com)
has voted to take the company to dormant status, effectively
ceasing operations. After careful consideration of a range
of options, the board concluded that under current economic
circumstances there is not a viable path forward for the
company.
A letter was sent to the Osaka Securities Exchange (OSE) formally giving notice of termination of the business cooperation agreement between the OSE and Nasdaq Japan Inc. The termination will become effective on 15 October 2002.
Nasdaq Japan Inc is dedicated to an orderly transition as it winds down operations. Companies listed on the Nasdaq Japan Market will retain their listing on the OSE, and thus there will be no disruption to trading. The access of these companies to the capital markets will be continued without interruption. In addition, Nasdaq Japan has offered to the OSE the use of its brand until the end of this year.
Despite attracting nearly 100 companies to the Nasdaq Japan market in its first two years, the board of directors determined that under the current economic circumstances the venture could not be sustained.
Nasdaq Stock Market president Rick Ketchum, a member of the Nasdaq Japan Inc board, says: Nasdaq deeply regrets having to take this step in Japan. However, a review of our strategic options going forward led us to the conclusion that due to economic and market conditions, this was the only option remaining. The decision to wind down our operations in Japan in no way changes Nasdaqs commitment to our international strategy and we will continue to leverage market opportunities, particularly in Europe in the near term.
Nasdaq Japan president Yoshihisa Katsuya says: This was a truly difficult decision for all members of the board to take. We thank all those who have supported our efforts over the past two years and wish to assure all issuers and investors that we will work in close cooperation with the Osaka Stock Exchange and other parties to ensure a smooth transition.